HB 1090 – Protections Against Deceptive Pricing Practices (by Landlords and Others!)
Effective January 1, 2026, House Bill 25-1090 (“HB 1090”) is an amendment to the Colorado Consumer Protection Act that aims to protect consumers from deceptive and unfair pricing practices by imposing new disclosure requirements in transactions involving goods, services, or properties. The new law will have significant impacts on residential landlords and other business owners. Here are some of the things you will want to know.
HB 1090 is designed to eliminate “hidden” fees by requiring landlords and other businesses to prominently disclose the total lump sum price that a tenant or other consumer must pay in exchange for goods, services, or properties. The law also includes a laundry list of new landlord-specific rules and prohibitions.
An aggrieved tenant or other consumer may be entitled to withhold payments or obtain a refund of payments already made. And because a violation of the the new law will be considered a deceptive trade practice under the Colorado Consumer Protection Act, a tenant or other aggrieved person may even be entitled to an award of treble damages along with attorney’s fees, and costs, in cases having sufficient public impact.
The “Total Price” Disclosure of Mandatory Fees and Charges
Once the new law takes effect, advertisements, lease agreements and other contracts will have to clearly and conspicuously disclose the “total price” that the tenant must pay under the lease. Two categories of expenses must be disclosed in the “total price”: (i) all fees or charges that are mandatory, and (ii) any fee or charge that the tenant cannot reasonably avoid. To comply with the new law, the “total price” must be listed as a single lump sum, without breaking down the total into separate fees or charges.
The Disclosure of Optional Fees and Charges
HB 1090 also requires a separate, clear, and conspicuous disclosure of fees and charges that could be described as “optional,” i.e. those charges that a tenant or other consumer can avoid if they choose to. The disclosure of such fees and charges must: (i) describe whether the amount charged is refundable, (ii) identify the good, service, or property being paid for, and (iii) identify the recipient of the money being paid.
Prohibition on Misrepresentations
A landlord or other business owner may not misrepresent the nature or purpose of pricing information, including: (i) whether a fee or charge is refundable, (ii) the person or entity being paid, or (iii) the actual price of the good, service, or property being paid for.
The Meaning of Clear and Conspicuous
To meet the “clear and conspicuous” requirement, the new law imposes different requirements on different kinds of media.
Visual pricing disclosures (e.g. brochures, newspapers, etc.) must be large enough, clear enough, and located in such a way as to be obvious.
Audio pricing disclosures (e.g. the radio, telephone) must be played at a clear volume, reasonable speed, and natural pace.
Audio-visual pricing disclosures (e.g. television) must disclose pricing information simultaneously in both audio and in video, even if the main message is only visual or only spoken. Each of the rules, above, for audio disclosures and visual disclosures also apply.
Finally, pricing disclosures presented using an interactive means (e.g. the internet, software) must be “unavoidable.”
Regardless of the format being used, pricing information must be presented in plain language that is understandable to an average person.
The Disclosure of the Unknown Price of Services
If the landlord or business cannot ascertain the total price of for services due to factors beyond that party’s control, specific disclosures must be made. In such cases, the landlord or business must disclose: (i) the factors that will determine the price, (ii) the mandatory fees that are known, and (iii) that the total price of the services may vary. This rule could be used in situations where the tenant or other consumer is required to pay for certain services, the cost of which is unknown, e.g. the cost of a renter’s insurance policy or other third-party services.
Special Rule for Utilities
A landlord’s total price disclosure does not need to include the actual cost charged by a utility provider.
Special Rules for Residential Landlords
A residential landlord or agent of a residential landlord may not require the payment of:
1. Any utility fee that is more than the actual cost of utilities.
2. Any fee that increases over 2% in a lease that’s a year or shorter.
3. Any fee to cover the cost of property taxes.
4. Any payment processing fee unless a free payment option is provided.
5. Any late fee for anything other than rent.
6. Any fee to cover the landlord’s legal responsibilities, including expenses for repairs under the Warranty of Habitability.
7. Any fee in excess of the cap on mark-ups charged to tenants under C.R.S. § 38-12-801(3)(a)(VI).
8. Any fee for something that was not actually provided.
9. Any fee for common area maintenance.
Recommendations for Landlords
To comply with HB 1090, landlords should:
1. Update Advertisements and Leases:
Efforts should be made to clearly and conspicuously disclose total price information in all ads and lease agreements. Clearly and conspicuously disclose “optional” fees/charges and provide a robust disclosure regarding any unknowable cost of services provided by the landlord or third parties. Ensure that your residential lease agreements do not include any prohibited provisions.
2. Eliminate Secondary Fees and Charges:
Consider whether it is practicable to fold secondary fees and charges into rent instead of listing add-ons. It may be easier under the new law to simply increase the rent rather than attempting to pass along itemized expenses to the renter.
3. Install Separate Utility Meters:
Consider installing separate utility meters for each rental until in order to avoid potential claims of overcharging. If the cost to do so is too expensive, considering folding the cost of utilities into rent instead of attempting to charge each tenant a fixed percentage of shared utilities.
4. Offer Free Payment Options:
Provide at least one rent payment method at no cost. If this cannot be accomplished, avoid the imposition of processing fees for the payment of rent or other fees.
